If engine not working that might be a fault.
"Lights are toggling "? what does this mean... Toggling NOT under your control ?? or toggling because you selected the decoder and use a function button ?
" Toggling front/ear "? could be an error condition for all we know.
The "Read type from decoder" should find the proper values. If not, even if you select LENZ, it probably will not work.
Marc